Strategy Vaults
The vaults are built on top of the Swaap Earn protocol. Each vault is a smart contract. It spreads a user's deposited assets across many strategies. The strategies are on a curated selection of top-performing, whitelisted protocols. The optimizer-”strategist” manages the assets allocation in each Vault. They use market analysis and algorithms to do this. It allows for changes in strategies and in market making pools. This lets the Vaults adapt to changing market demands and yield opportunities. This strategy ensures that onchain yield seekers get the best yield in all markets. It spares them from needing to watch markets. It lets them automatically adjust their assets to seize opportunities or cut risks. It also cuts significantly transaction costs.
Each strategy vault uses offchain computation. It also helps with collateral management for lending and borrowing. This approach lets strategists adjust collateral in response to market data. It greatly reduces liquidation risks compared to manual methods. It offers a set & forget UX to every Swaap Earn user. Adding offchain computation ensures that Swaap Earn strategies stay competitive and secure.
The strategy vault works with many investment strategies. The vaults support single-asset and multi-asset strategies. They structure around the ERC-4626 standard for tokenized vaults. This standardization allows easy integration with the broader DeFi ecosystem. It improves liquidity and efficiency for LPs. They seek to generate the best yield without constant management.
A small part of the vault's assets is kept as “idle”. This ensures the vault has enough liquidity to let users withdraw smoothly within a defined threshold.
Whitelisted strategies and protocols
| Strategy | Protocol |
|---|---|
| Recursive staking | Aave v3 |
| Lending | Aave v3 |
| Market-making | Swaap Maker |
| Swap | Paraswap |
| Flash loan | Balancer |
Asset & chain availability
| Supported chain | Supported asset types |
|---|---|
| Arbitrum | USDC & ETH |